Patent trolls are taking aim at blockchain, but the industry is fighting back.
In the latest crypto news, the world of blockchain just gained two powerful allies in the fight against patent trolls. The Cryptocurrency Open Patent Alliance (COPA) and Unified Patents have teamed up to launch the “Blockchain Zone,” a campaign designed to protect the blockchain and crypto space from the clutches of non-practicing entities (NPEs).
These patent trolls hold patents with no intention of using them and instead aim to profit by suing companies or forcing them into costly settlements.
In 2023 alone, patent trolls were responsible for over 1,700 lawsuits, making up 58% of all patent litigation in the U.S. and targeting tech firms 95% of the time, according to Unified Patents.
NPEs focus on valuable blockchain technologies such as non-fungible tokens (NFTs), wallets, and smart contracts, threatening innovation and putting immense financial strain on developers and firms.
The collaboration between COPA and Unified Patents aims to level the playing field for blockchain businesses, shielding them from these predatory tactics.
The partnership ensures that companies can continue pushing the boundaries of blockchain without the looming fear of baseless legal claims.
In recent months, patent trolls have begun making their presence felt in the crypto world. Notably, the DeFi Education Fund (DEF) recently moved to cancel a patent linking off-chain data to blockchain, owned by True Return Systems, which had targeted protocols like MakerDAO and Compound Finance.
Meanwhile, Ethereum Name Service (ENS) is challenging a patent granted to its competitor Unstoppable Domains, claiming it originally pioneered the technology for blockchain-based domain services.
With key players like COPA and Unified Patents now fighting back, blockchain firms can breathe a little easier, knowing that unwarranted legal challenges won’t hold back the sector.
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This partnership marks a significant step forward in protecting the future of blockchain innovation from unnecessary legal battles.
